Suppose that the following graph depicts the market for funds in the US credit market. The...
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Suppose that the following graph depicts the market for funds in the US credit market. The blue line, labeled D, represents the demand for funds. The supply curve labeled s₁ represents the supply curve of funds from American sources, with no foreign funds in the market. The supply curve labeled $2 represents the supply curve of funds from both American and foreign sources. Long-Term Interest Rate 8 1 0 D Amount of Funds 52 ? Without influence from foreign sources of funds, the long-term equilibrium interest rate is term equilibrium interest rate is %. %. With influence from foreign funds, the long- Suppose that the following graph depicts the market for funds in the US credit market. The blue line, labeled D, represents the demand for funds. The supply curve labeled s₁ represents the supply curve of funds from American sources, with no foreign funds in the market. The supply curve labeled $2 represents the supply curve of funds from both American and foreign sources. Long-Term Interest Rate 8 1 0 D Amount of Funds 52 ? Without influence from foreign sources of funds, the long-term equilibrium interest rate is term equilibrium interest rate is %. %. With influence from foreign funds, the long-
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